Gilead Sciences (GILD) saw a rise in its share price during intraday trading on Monday following an upgrade by Raymond James analysts from “market perform” to “outperform.”
Raymond James issued a bullish price target of $93, reflecting a nearly 40% premium over Friday’s closing price of $66.69. Despite a year-to-date decline of about 15%, Gilead shares showed a modest 0.6% increase around midday Monday.
Positive Outlook Driven by Clinical Advancements
The upgrade was bolstered by what Raymond James described as “outstanding data” from Gilead’s Phase 3 trial of lenacapavir, an injectable HIV treatment. The trial demonstrated a 100% effectiveness rate in preventing HIV infection among women. Pending successful outcomes in its next study, Gilead plans to launch lenacapavir by late 2025.
Additionally, Raymond James highlighted the potential approval by the Food and Drug Administration (FDA) for seladelpar in treating primary biliary cholangitis (PBC), a chronic liver disease. The firm projected that these two treatments could collectively generate $3.7 billion in annual sales by 2030, according to its financial model.
Market Response and Future Prospects
The market’s positive response to Raymond James’ upgrade underscores investor optimism surrounding Gilead’s advancements in key therapeutic areas, particularly HIV and liver diseases. The anticipated launches of lenacapavir and potential approval of seladelpar represent significant growth opportunities for the company moving forward.
As Gilead continues to innovate and expand its portfolio in critical medical fields, analysts and investors alike are closely watching developments that could further enhance its market position and financial performance.
